Paytm Mall’s Massive Offline Push; Kirana Stores Will Get Digitized With QR Codes!
Out of roughly $700 billion retail markets, e-commerce constitutes mere one-fifth of the overall spending. And the online retailer which is able to crack this code of converting offline shopping into online would be the eventual winner.
Attempting to bring in more offline retail shoppers into online medium, Paytm Mall has launched a massive offline to online push, which can actually change the very business model of e-commerce in India.
With 68 million products and 14,000 sellers, Paytm Mall was launched in February this year as a separate e-commerce portal by Paytm, which will soon act as the gateway for Alibaba to enter the Indian market.
Earlier, Paytm and Big Bazaar had collaborated to create a mega-coalition of offline and online retail.
Paytm Mall Will Digitalize Kirana Stores
Paytm has understood that majority of shopping in an average Indian household is accomplished at local kirana stores. No doubt Big Basket and Grofers, along with several other hyperlocal delivery startups exist right now, but the offline market of local kirana stores is too big, and unexplored right now.
Understanding this challenge, Paytm has decided to leap into the offline-to-online business model, and the process has been designed to keep it simple.
To start with, Paytm Mall will digitise every product available at local kirana stores, and provide a unique QR code for the same. This will create the foundation, based on which Paytm hopes to trigger online shopping.
How Will It Work?
There are mainly three steps:
- Step 1: The customer will visit the subsequent kirana store on Paytm Mall
- Step 2: As every product has been digitised, the customer will select the relevant products, and initiate payment.
- Step 3: The product is delivered to the customer’s home, by the kirana store
However, there are two things which are still in doubt: How will the products available at the kirana store be updated, as newer products are introduced. Will the store owner do it themselves, or Paytm will provide assistance in the same?
And, how much commission will Paytm charge for these online orders? Will it be free initially?
How Will Paytm Mall Help Local Kirana Stores?
In their blog post announcement, Paytm has laid down a series of FAQs, which provides us a better explanation of the services being offered, and how it will help local kirana stores.
To start with, Paytm will help with the delivery of products which are purchased online. In their blog, Paytm said, “We have a vast logistics partner network that guarantees same-day and next day deliveries.”
Besides, Paytm will provide with an ‘arbitration process’, in the case of dispute related to payment or delivery of products via this medium.
As per details available, Paytm Mall will initiate this unique partnership with local kirana stores, after ‘examining’ their local reputation among the neighbourhood and their trust factor.
And, this offline to online model will only work for local kirana stores, and neighbours living nearby the shops. For inter-city orders, the regular mode of online shopping will be implemented.
This unique partnership seems ironical, considering that just 2 years ago, offline retailers were at war with online retailers, for snatching away their business.
Do you think that Paytm Mall will be able to make a dent in the e-commerce market of India? Do let us know by commenting right here.
Here are some of the other offline to online model, used and executed by various retailers (including Paytm):